Oct-Dec balance of payments negative; first in 3 years

India's balance of payments was in deficit for the first time in three years at $12.8 billion during the October-December quarter, compared with a surplus of $4 billion in the corresponding period a year earlier.

Like this story, share it with millions of investors on M3

Oct-Dec balance of payments negative; first in 3 years

India's balance of payments was in deficit for the first time in three years at $12.8 billion during the October-December quarter, compared with a surplus of $4 billion in the corresponding period a year earlier.

Post your opinion here

India's balance of payments was in deficit for the first time in three years at $12.8 billion during the October-December quarter, compared with a surplus of $4 billion in the corresponding period a year earlier.

For July-September, the BoP surplus was unchanged at $276 million, the Reserve Bank of India said on Friday.

India's current account deficit was $19.6 billion in the December quarter, compared with a deficit of $9.7 billion a year earlier, the RBI said.

For July-September, the current account deficit was revised upwards to $18.4 billion.

Starting in the June 2011 quarter, the RBI moved to a new reporting format for balance of payments data, dividing the capital account into capital account and financial account.

The financial account is the more closely watched of the two, as it represents more items under the former capital account definition. The modified version of the capital account only includes official transfers.

The financial account includes, among other items, foreign direct investment and portfolio investment as well as overseas borrowing by Indian companies.

The financial account surplus stood at $20.9 billion in the December quarter compared with a surplus $9.9 billion a year ago.